KARACHI, Jan 20: Stocks on Tuesday took a technical breather as investors sold in part their long positions followed by reports of sharp increase in badla rates to 20 per cent from 12 per cent after OGDCL made its debut on the carryover market.
The KSE 100-share index showed a fractional decline of 0.65 point at 4,687.73 as compared to 4,688.38 points a day earlier. Textile and sugar shares showed good rallies ahead of their board meetings for the year ended Sept 30, 2003, and some of them posted sharp gain on anticipatory buying prompted by expectations of dividend.
"I don't think the current run-up is overdone," predicts a leading stock analyst, adding "after having tested the crucial level of 4,700 points, the market is in the process of consolidation and will resume its journey beyond this level during the next couple of sessions." However, the pause is logical as it has made market's forward march to the index level of 5,000 more easy, he said, adding the next few sessions could witness more previous all-time record surpassed.
"After having attained the coveted figure of over Rs1.2 trillion or $20 billion in terms of market capital, the local bourse has met one of the most pressing conditions of the foreign investors," says a leading member of the KSE.
The steep increase in the market capitalization after listing of OGDCL, having market capital of $3 billion may not open the floodgate for foreign investors, but it could pave the way for a good beginning in the months to come.
Leading shares, notably PSO, FF Bin Qasim, Sui Northern Gas, KESC, ICP SEMF, and D.G. Khan Cement remained in strong demand and finished with fresh good gains, while Engro Chemical Fauji Fertilizer, ICI Pakistan, Dewan Salman and OGDCL came in for renewed selling and tended further lower, although only extreme gains were pared.
Although selling in some of the pivotals was terribly aggressive but failed to cause any major dents in the prevailing price structure thanks to active support at the dips.
The technical correction was long overdue as the market has risen sharply higher during the last two weeks aided by positive background news both on the political and corporate fronts.
Prominent gainers were led by Siemens Pakistan, Rafhan Maize and Nestle MilkPak, which posted sharp gains ranging from Rs28.65 to 30.95 on dividend related buying.
Other good gainers included Ahmed Hassan Textiles, PSO, Pakistan Gum & Chemicals, Aventis, Pakistan Services, Janana Demalucho, Island Textiles and Bhanero Textiles, up by Rs3 to Rs6.
Losers were led by Century Papers, Packages, Gatron Industries, Clariant Pakistan, Atlas Battery, Parke-Davis and Clover Pakistan, off Rs4.15 to Rs6.
Trading volume fell to 308m shares from the previous 418m shares, but losers forced a strong lead over the gainers at 214 to 147, with 53 shares holding on to the last levels.
Sui Northern Gas again topped the list of most actives, up 60 paisa at Rs51.50 on 38m shares, followed by ICP SEMF, higher by Rs1.75 at Rs54.00, on 26m shares, Fauji Cement, lower by 20 paisa at Rs12 also on 26m shares, FF Bin Qasim, up 45 paisa at Rs19.30 on 25m shares and Maple Leaf Cement, up 85 paisa at Rs34.70 on 21m shares.
Other actives were led by PSO, higher by Rs3.70 on 19m shares, Sui Southern Gas, lower Rs1.25 on 17m shares, National Bank, steady by five paisa on 14m shares, OGDCL, off 60 paisa on 13m shares and D.G. Khan Cement, up 40 paisa on 11m shares.
FORWARD COUNTER: Sui Northern Gas came in for active support and rose by 55 paisa at Rs51.40 on 9m shares followed by FF Bin Qasim, higher by 40 paisa at Rs19.30 on 5m shares, PSO, sharply higher by Rs3.75 at Rs291 on 4m shares, Pak Capital Market Fund, easy 10 paisa at Rs11.90 on 3m shares and Hub-Power, lower 30 paisa at Rs38.70 on 2m shares.
DEFAULTER COS: Mukhtar Textiles came in for active support and rose by 15 paisa at Rs3.65 on 0.164m shares followed by Nazir Cotton, higher by 25 paisa at Rs1.30 on 0.137m shares and Kashmir Edibles, easy 25 paisa at Rs13.05 on 0.126m shares. Others were also modestly traded.
DIVIDEND: Hamza Sugar Mills, cash 10 per cent; and Mehr Dastgir Textiles, 2.5 per cent.
BOARD MEETINGS: Janana De Malucho Textiles and Bannu Woollen, on Jan 21; Sana Industries, Island Textiles, Tata Textiles, Din Textiles, Nishat Mills, on Jan 24; Habib Modaraba, Bhanero Textiles, Blessed Textiles, Noon Sugar, Ibrahim Fibre, on Jan 26; Arif Habib Securities, Mitchell's Fruit Farms, on Jan 27; BOC Pakistan and Crescent Sugar, on Jan 29.